Nintendo has denied reports claiming that it will be earning higher profits from sales of the Switch OLED. A report last week had claimed that Nintendo will earn a $40 profit, considering that it has priced the Switch OLED at $50 higher than the base model despite costing only $10 more to manufacture.
A news report on July 15, 2021(JST) claimed that the profit margin of the Nintendo Switch (OLED Model) would increase compared to the Nintendo Switch. To ensure correct understanding among our investors and customers, we want to make clear that the claim is incorrect. (1/2)
— 任天堂株式会社（企業広報・IR） (@NintendoCoLtd) July 19, 2021
“A news report on July 15, 2021(JST) claimed that the profit margin of the Nintendo Switch (OLED Model) would increase compared to the Nintendo Switch. To ensure correct understanding among our investors and customers, we want to make clear that the claim is incorrect,” said the company via Twitter.
Additionally, Nintendo also took the opportunity to preemptively put to rest any additional rumours of working on another Switch variant. “We also want to clarify that we just announced that Nintendo Switch(OLED Model) will launch in October, 2021, and have no plans for launching any other model at this time,” said the statement.
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Last week, a Bloomberg report claimed that the new $350 price point will earn Nintendo a $40 profit margin, as the manufacturing cost was only $10 higher than that of the base model. This claim spurred up discussions of whether Nintendo’s price point for the OLED version was acceptable or not.
Another report also claimed that the new pricing policy could set an industry-wide precedent. The Japan Times quoted Ace Research Institute analyst, Hideki Yasuda, who said that a precedent for charging more will be set across the industry should Nintendo’s policy result in a sales boost for the Switch. The report also claimed that an inside source from Sony’s PlayStation department has said that the company is “closely monitoring” the market response to Nintendo’s new policy.
The Switch OLED version features a seven-inch OLED screen with 1280x720p resolution and 64GB of memory. A wider and sturdier flap has been implemented instead of the flimsy stand featured on the original model; the dock also has space for a LAN cable port. It will launch on October 8, 2021 and is up for pre-order.
If you’re looking to add LAN connectivity to your current Switch model, Nintendo is selling docks separately on it’s online store. It will cost $60, or $40 for a refurbished one.
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